Mumbai: The Indian Rupee Posted by on Wednesday U.S. DollarThis was helped by Chinese yuan-fuelled strength, potential dollar inflows and a key support level.
The rupee was at 82.64 against the US dollar at 10:52 am, compared with 82.71 on Tuesday. This is despite a further decline in the yuan, which pushed other Asian currencies The dollar undervalued and strengthened against its major peers.
The rupee is also being supported by expectations of possible inflows into Indian equities when the MSCI indices will rebalance at the end of the session, said Dilip Parmar, research analyst. HDFC Securities,
Index provider MSCI’s rebalancing will take effect at the close of the markets and this typically results in flows into stocks.
Besides, according to traders, the rupee is enjoying a familiar technical support around 82.80-82.85 levels, which it has held in the past.
The offshore Chinese yuan fell 0.35% to 7.1156 against the dollar, its lowest in six months, after data showed China’s factory activity contracted more than expected in May on weaker demand.
The dollar index rose to 104.34, while the US yield fell.
now the focus is on US House of Representatives Debate on the debt ceiling legislation and for an expected vote on passage on Wednesday.
Reacting to the fall in US Treasury yields, the 1-year rupee forward premium rose to 1.80%.
Investors are also looking forward to India’s GDP data due later in the day and US jobs data on Friday.
The rupee was at 82.64 against the US dollar at 10:52 am, compared with 82.71 on Tuesday. This is despite a further decline in the yuan, which pushed other Asian currencies The dollar undervalued and strengthened against its major peers.
The rupee is also being supported by expectations of possible inflows into Indian equities when the MSCI indices will rebalance at the end of the session, said Dilip Parmar, research analyst. HDFC Securities,
Index provider MSCI’s rebalancing will take effect at the close of the markets and this typically results in flows into stocks.
Besides, according to traders, the rupee is enjoying a familiar technical support around 82.80-82.85 levels, which it has held in the past.
The offshore Chinese yuan fell 0.35% to 7.1156 against the dollar, its lowest in six months, after data showed China’s factory activity contracted more than expected in May on weaker demand.
The dollar index rose to 104.34, while the US yield fell.
now the focus is on US House of Representatives Debate on the debt ceiling legislation and for an expected vote on passage on Wednesday.
Reacting to the fall in US Treasury yields, the 1-year rupee forward premium rose to 1.80%.
Investors are also looking forward to India’s GDP data due later in the day and US jobs data on Friday.